Final answer:
The correct amount of Facilities & Administration (F&A) cost to request for an institution with a 50% F&A rate on a project is $33,500, calculated by applying the 50% rate to the Modified Total Direct Costs (MTDC) which, in this case, total to $67,000.
Step-by-step explanation:
To determine the amount of Facilities & Administration (F&A) cost, also known as indirect costs, that should be requested by an institution with a 50% F&A rate (MTDC) on a one-year project, we first need to clarify what the MTDC (Modified Total Direct Costs) include. Direct costs typically cover expenses that are directly attributable to the project like salaries, materials, and travel. However, in the case of MTDC, there are exclusions such as equipment, capital expenditures, charges for patient care, rental costs, scholarships, and fellowships as well as the portion of each subcontract in excess of $25,000.
Based on the details provided in the question:
- Salaries and benefits: $40,000
- Travel: $2,000
- Tuition costs: $2,000 (usually excluded from MTDC)
- Subcontract: $75,000 (only the first $25,000 is included)
The MTDC in this case would be $40,000 (salaries and benefits) + $2,000 (travel) + $25,000 (portion of the subcontract) = $67,000. At a 50% F&A rate, the indirect costs would be 50% of $67,000, which is $33,500. Therefore, the correct amount of F&A to request would be $33,500.